Nassau County gas station owner Kulbir Singh on Tuesday pleaded guilty to three counts of third-degree grand larceny for failing to report more than $1 million in sales taxes collected at three of his properties, Attorney General Eric T. Schneiderman has announced.
Singh, 53, faces up to four years in prison as a result of the conviction on the Class D felonies, officials said. He was ordered to pay $150,000 in restitution and sign a confession of judgment for the remaining $850,000 that was stolen from the state, officials said.
His sentencing date has not yet been set.
“Our investigation uncovered a deliberate scheme by Kulbir Singh to cheat New York State out of vital tax revenue,” Schneiderman said in a statement. “Stealing from taxpayers undercuts the funding of important programs that support all New Yorkers.”
Singh’s corporations, the three BP gas stations in Nassau County — Dashmesh Petroleum Inc., Gobind Petroleum Inc. and Karam Mart Inc. — each pleaded guilty to one count of second-degree grand larceny, a class C felony and were fined $50,000 each, state officials said.
Gobin is on Hempstead Avenue in West Hempstead; Dashmesh is on Merrick Road in Valley Stream and Karam is on Hempstead Avenue in Elmont.
The gas stations collected but failed to report more than $1 million in sales taxes from September 2011 through December 2014, prosecutors said.
The case was investigated by the state Department of Taxation and Finance’s Criminal Investigations Division and was later referred to Schneiderman’s office.
Singh’s gas stations were previously convicted of felony charges for failing to pay sales tax, prosecutors said.
In October 2012, Singh admitted to controlling four gas stations that had stolen more than $500,000 in sales taxes.
The corporations pleaded guilty to felony tax fraud charges and agreed to pay more than $1 million in restitution, interest and penalties, state officials said.
But the corporations ultimately paid only $500,000 of the money owed, officials said.
It was during the investigation of that failure to pay the remaining money that the Department of Taxation and Finance uncovered evidence that Singh continued to steal sales tax proceeds at gasoline stations he controlled, prosecutors said.
That investigation resulted in the current indictment, state officials said.